Ahead of the key vote by Hutchison Telecom shareholders on sale of Indian assets to Vodafone, the Hong Kong-based firm and its minority partners in Hutch-Essar have asserted that their investments met foreign direct investment norms
India received Rs 14232.42 crore (Rs 142.32 billion) worth of foreign direct investment in the first nine months of the current fiscal as opposed to Rs 12117.36 crore (Rs 121.17 billion) FDI received in the whole of 2003-04 fiscal.
The proposal was mooted by the department of industrial policy and promotion in the ministry of commerce and industry.
The Bahujan Samaj Party on Monday indicated that it will support the government in Parliament on the issue of Foreign Direct Investment, saying the fact that the Centre has not thrust the policy on states and the aim of keeping communal forces at bay will determine its stand.
India, at present allows 51 per cent FDI in single brand retail and 100 per cent in the cash-and-carry .
The commerce and industry ministry has informed the Prime Minister's Office that the Bharti Group has conveyed to the government that its joint venture with Wal-Mart was in compliance with the existing FDI policy.
This much needed reform will also help the consumer who is hit with an eight per cent inflation in the month of August mainly for food items and we also expect to see quality improved with products delivered to the market place and the farmers getting a bigger share of the pie, INOC (I) said in its statement.
With the 72-hour deadline to the Centre to rollback diesel price hike, LPG subsidy cap and FDI in multi-brand retail expiring on Monday, the Trinamool Congress mounted fresh pressure with a Union minister belonging to it listing three options, including withdrawal of support to the United Progressive Alliance.
The storm over the issue of Foreign Direct Investment in retail refused to subside with the matter, along with quota in promotions for Scheduled Castes and Scheduled Tribes, paralysing proceedings in Parliament for the second day on Friday.
Government has issued a formal notification for raising foreign direct investment limit in public sector refineries to 49 per cent. The FDI would require prior approval of Foreign Investment Promotion Board. The condition of compulsory divestment of up to 26 per cent by foreign companies commencing trading and marketing of petroleum products has been deleted. Government had allowed 100% FDI in actual trading and marketing of petroleum products, with 26% divestment condition.
At a time when Bharatiya Janata Party and several other parties have also opposed FDI in retail, the Left leaders said they have appealed to all parties to support the motions in both Houses of Parliament.
"It is unprecedented. When Parliament is in session, a major decision was taken outside Parliament. It has never happened," Communist Party of India-Marxist leader Sitaram Yechury told reporters outside Parliament House.
In 2016, (till April 22), 64 proposals have been received.
Spanner may have been thrown in the government works on foreign direct investment in multi-brand retail.
During the 10-months of this financial year, the highest FDI came in services ($1.80 billion), followed by pharmaceuticals ($1.26 billion), automobiles ($1 billion) and construction development ($966 million).
Propelled by strong growth in the pharmaceutical sector, India's foreign direct investment jumped over 133 per cent to $814 million during April-June 2004 as compared to $349 million reported in the corresponding quarter last year.
Tesco was the first global retailer to apply for multi- brand retailing in India.
Deadlock over the government's decision to allow FDI in retail paralysed Parliament for the fourth day on Wednesday, with a united opposition joined by United Progressive Alliance partners Trinamool Congress and Dravida Munnettra Kazhagam disrupting proceedings, demanding a rollback of the controversial decision. With formal and back-channel talks between government leaders and their opposition counterparts failing to make any breakthrough, both Houses were adjourned.
The Government on Thursday said foreign direct investment will not be allowed in housing projects for urban poor.
In a major relaxation of foreign investment rules in the pharma sector, a special group set up under the finance ministry has suggested it could consider permitting up to 49 per cent FDI (foreign direct investment) in the automatic route for brownfield investments in case the company's control remained in Indian hands.
Gujarat riots, terror attack in the United States and SARS outbreak in South East Asia led to a massive fall in foreign direct investment in India during 2001-02 to 2003-04, according to an Assocham report.
Reserve Bank Governor Raghuram Rajan on Monday warned against compromising India's interest for the sake of attracting foreign investment and said the priority should be framing transparent policies as well as resolving contractual tax disputes quickly.
Before concluding that the current level of FDI flows is a reflection of India coming into its own with regard to manufacturing, it is important to carefully study the numbers and to understand the story that they tell.
Additional investment of $190 billion has to be made in the next eight years.
The government has cleared 12 foreign direct investment (FDI) proposals that will bring in Rs 212 crore (Rs 2.12 billion), of which the largest chunk will be by US-based Millennium India Acquisition Company. Meanwhile, 13 proposals, including two from B A G Films, were deferred by the government, according to an official statement. The US-based company will bring in Rs 159.92 crore (Rs 1.59 billion) of FDI to acquire stakes in two non-banking finance companies.
"AAP has done a fabulous job highlighting corruption and governance issues and have a good platform for that, but their economic platform is very scary," Venktesh Shukla, president, The Indus Entrepreneurs Silicon Valley, the largest TiE chapter, told Rediff.com. "Valley investors are watching India minutely; the next few months are very crucial for Silicon Valley investors."
An Enforcement Directorate (ED) investigation into alleged foreign exchange law violations by edtech major Byju's and its CEO and co-founder Raveendran Bjyu is in the final stages of completion following which a show cause notice could be served to them, official sources said Tuesday. The central probe agency had in April searched two business and one residential premises, including that of the registered company of Byju's -- Think & Learn Pvt. Ltd. -- under the provisions of the Foreign Exchange Management Act (FEMA).
The Confederation of All India Traders, the apex body of trade federations and small-scale sector players in the country, upped their campaign on Saturday against the United Progressive Alliance government's proposal to bring in foreign direct investment in multi-brand retail by another notch. The CAIT announced a nationwide campaign, 'Retail FDI bhagao, apne vatan ko bachao' (Chase out FDI in retail, save our nation) in the national capital on Saturday.
It is a myth that FDI in retail will kill at local kirana stores.
The government also increased the power of the FIPB.
The finance ministry on Wednesday ruled out more than 26 per cent foreign direct investment in pension sector and said fund managers would be selected through a competitive bidding process.
Leader of Opposition in the Rajya Sabha Arun Jaitley on Tuesday blamed Congress President Sonia Gandhi and her Congress General Secretary son Rahul for the FDI decision. Jaitley said that the decision on FDI was taken without bothering that it will hurt the interests of farmers, small traders as well as consumers, and would in no way help the economy.
The stipulation that new front-end stores will have to be set up will impact M&A in the sector.
While Federation of Indian Chambers of Commerce and Industry extended an all-out support to the government, Confederation of Indian Industry recommended 'a calibrated approach for introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements'.
Opposition members created an uproar in both Houses of Parliament on Monday over issues like allowing 51 per cent Foreign Direct Investment in multi-brand retail, demand for Telangana state and threat to people of Kerala due to Mullaperiyar dam.
Industry body CII has asked the governments of Delhi and Rajasthan to reconsider their decisions to scrap the FDI policy for multi-brand retail as such investments would help create millions of jobs and benefit consumers.
The foreign direct investment in the country declined by 25 per cent to $2.04 billion in January compared to the same month last year, snapping a trend of positive growth in the previous three consecutive months.
Retail sector seeks industry status, which can reduce the cost of capital and to allow FDI in retail that can increase investments and global competitiveness.
